XTI Aerospace Reports First Quarter 2025 Results and Provides Business Update

Rhea-AI Summary

XTI Aerospace (NASDAQ: XTIA) reported its Q1 2025 results, highlighting significant progress in both operational and financial fronts. The company achieved key milestones for its TriFan 600 aircraft program, including FAA acceptance of Type Certification application and enhanced fuel system design increasing wing fuel volume from 300 to 400 gallons. Financially, XTIA strengthened its position with cash and equivalents rising by $3.9M to $8M, while eliminating legacy debt and stock-based obligations. The board authorized a $5M share repurchase program. Looking ahead, Q2 2025 priorities include engine and drivetrain supplier selection, launch of the Sparrow subscale model, and preparation for TriFan 600 pre-sales reopening later in 2025.

Positive

• FAA accepted TriFan 600 Type Certification application
• Cash and equivalents increased by $3.9M to $8M
• Net working capital increased by $8.9M
• Industrial IoT segment revenues doubled year-over-year with improved gross margins
• Eliminated legacy debt with less than $0.1M interest-bearing debt remaining
• $5M share repurchase program authorized
• Enhanced wing fuel capacity from 300 to 400 gallons

Negative

• Pre-sales program currently closed, pending relaunch
• Still in development phase with no current revenue from main aircraft program

Insights

Aerospace Investment Analyst

XTI strengthens finances while hitting TriFan 600 development milestones, positioning for pre-sales reopening despite early revenue stage.

XTI Aerospace's Q1 2025 results demonstrate notable financial stabilization alongside technical progress for its pioneering TriFan 600 powered-lift aircraft. The balance sheet improvements are substantial - cash increased by $3.9 million to $8 million, while the company eliminated legacy debt and redeemed all Series 9 Preferred Stock that had previously restricted capital-raising capabilities.

The FAA's acceptance of XTI's Type Certification application represents a critical regulatory milestone. This validation from aviation authorities significantly de-risks the certification pathway, though investors should understand that full certification likely remains years away given the novel nature of powered-lift aircraft technology.

Technical advancements in the fuel system design - increasing wing capacity from 300 to 400 gallons - directly addresses range limitations that have historically challenged VTOL aircraft adoption for regional mobility. This 33% improvement in fuel capacity translates to meaningful mission profile enhancements for potential customers.

While the company's Industrial IoT segment showed revenue growth (doubled year-over-year with improved margins), XTI remains pre-revenue for its core aerospace business. The announced $5 million share repurchase program signals management confidence but also raises questions about capital allocation given the substantial funding typically required for aircraft development.

The planned Q2 milestones - particularly engine supplier selection and the Sparrow subscale model testing - will provide critical validation points for XTI's technological approach. The preparation for reopening pre-sales later in 2025 suggests management anticipates sufficient technical and regulatory progress to justify taking customer commitments, which would bring much-needed validation of market demand.

Financial Restructuring Specialist

XTI Aerospace's Q1 2025 results reveal a comprehensive financial overhaul that materially strengthens the company's position. The elimination of legacy debt obligations and redemption of Series 9 Preferred Stock represents a strategic financial liberation that removes significant constraints on future capital raising flexibility.

The $3.9 million increase in cash position alongside a $8.9 million improvement in working capital demonstrates effective balance sheet management. Particularly noteworthy is the repayment of secured promissory notes that released security interests in XTI Aircraft Company assets - effectively unlocking these assets from encumbrances that could have impeded strategic optionality.

The retirement of the Strategic Transaction Bonus Plan obligation to Legacy Inpixon management explains the substantial $5.1 million decrease in accrued expenses. This cleanup of legacy obligations removes potential overhang and simplifies the capital structure.

The company's $5 million share repurchase authorization, while modest in absolute terms, signals management's belief in undervaluation while maintaining sufficient liquidity for operations. This balanced approach to capital allocation reflects prudent financial stewardship during a critical development phase.

While the doubling of Industrial IoT segment revenues with margin improvements provides some operational cash flow, investors should recognize XTI remains in capital-intensive development phase. The strengthened balance sheet and removal of restrictive covenants positions the company to potentially access capital markets more favorably as it approaches key validation milestones, including the planned pre-sales relaunch later in 2025.

Balance sheet strengthened through elimination of legacy debt and stock-based obligations

Strong TriFan 600 program execution and FAA certification progress position XTI Aerospace for upcoming pre-sales relaunch

ENGLEWOOD, Colo., May 19, 2025 /PRNewswire/ -- XTI Aerospace, Inc. (Nasdaq: XTIA) ("XTI Aerospace" or the "Company"), a pioneer in xVTOL and powered-lift aircraft solutions, today announced the filing of its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025 and provided an update on recent corporate milestones and strategic initiatives.

"XTI Aerospace entered 2025 with strong momentum, advancing the development of the TriFan 600 while improving our financial position through disciplined capital management," said Scott Pomeroy, Chairman and CEO of XTI Aerospace. "We completed critical Q1 product and engineering milestones, including FAA acceptance of our Type Certification application, fuel system design enhancements, and expanded FAA engagement—all of which continue to position us as a leader in the emerging powered-lift category.

"We are entering a defining period in our company's journey," added Pomeroy. "In addition to the significant technical progress our team has achieved, I am particularly proud of our financial accomplishments this quarter. We more than doubled our Industrial IoT segment revenues year-over-year, improved our related gross margins, and significantly strengthened our balance sheet by eliminating legacy debt and stock-based obligations. With our development advancing and our financial position stabilized, XTI Aerospace is focused on executing our strategy to deliver long-term shareholder value and revolutionize regional air mobility."

First Quarter 2025 Business Highlights and Recent Developments

• FAA Type Certification Application Accepted: The FAA accepted XTI Aerospace's TriFan 600 Type Certification application on March 17, 2025.
  
  
• Fuel System Design Milestone Achieved: Enhanced wing fuel volume from approximately 300 to 400 gallons, improving maximum range and mission length.
  
  
• Expanded Corporate Advisory Board: Added aerospace, defense, and AI leaders with experience at companies such as Palantir Technologies, U.S. Space Force and Air Force, Wheels Up, Bombardier, and Global Medical Response.
  
  
• Authorized Share Repurchase Program: The board of directors authorized up to $5 million in share repurchases to address what management believes is a significant undervaluation of the Company's common stock.

First Quarter 2025 Financial Highlights

• Cash and cash equivalents increased by approximately $3.9 million to approximately $8 million.
  
  
• Net working capital increased by approximately $8.9 million.
  
  
• Repaid in full the outstanding secured promissory notes issued to a certain party, which resulted in the release of that party's security interest in the assets of XTI Aircraft Company. As of March 31, 2025, we had less than $0.1 million of interest-bearing debt outstanding.
  
  
• Redeemed the remaining outstanding shares of Series 9 Preferred Stock, leaving 0 shares of Series 9 Preferred Stock issued and outstanding as of March 31, 2025. The Series 9 Preferred Stock had restricted the Company's ability to raise capital, as the Company was prohibited from taking certain actions without prior written consent from the holders of the Series 9 Preferred Stock.
  
  
• Repaid the remaining Strategic Transaction Bonus Plan obligation to prior Legacy Inpixon management, which was the primary driver for the approximate $5.1 million decline in accrued expenses and other current liabilities from December 31, 2024 to March 31, 2025.
  
  
• Repaid the accounts payable and most commitments that were inherited from Legacy Inpixon.

Strategic Outlook and 2025 Priorities

Building on a successful first quarter, XTI Aerospace remains focused on advancing the TriFan 600 through continued engineering, certification, and supplier selection milestones. Key Q2 2025 priorities include:

• Engine and drivetrain supplier selection.
  
  
• Launch of the Sparrow subscale flying model to validate certain aerodynamic and transition flight dynamics.
  
  
• FAA technical familiarization briefings and expanded certification engagement.
  
  
• Preparation for the reopening of TriFan 600 pre-sales later in 2025.

"Looking ahead, we believe the progress we've made in both engineering and corporate development has set the stage for an exciting second quarter," continued Pomeroy. "As we move closer to supplier selections, subscale flight demonstrations, and the reopening of TriFan 600 pre-sales later this year, we remain committed to delivering on our vision of transforming regional air mobility. We appreciate the continued support of our shareholders as we endeavor to build lasting value together."

About XTI Aerospace, Inc. 

XTI Aerospace (XTIAerospace.com) (Nasdaq: XTIA) is the parent company of XTI Aircraft Company, an aviation business based near Denver, Colorado, currently developing the TriFan 600, a fixed-wing business aircraft designed to have the vertical takeoff and landing (VTOL) capability of a helicopter, maximum cruising speeds of 311 mph and a range of 985 miles, creating an entirely new category – the xVTOL. Additionally, the Inpixon (inpixon.com) business unit of XTI Aerospace is a leader in real-time location systems (RTLS) technology with customers around the world who use the Company's location intelligence solutions in factories and other industrial facilities to help optimize operations, increase productivity, and enhance safety. For more information about XTI Aerospace, please visit XTIAerospace.com and follow XTI Aerospace on LinkedIn, Instagram, X, and YouTube.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act. All statements other than statements of historical fact contained in this press release, including without limitation, statements about XTI Aerospace's ability to achieve anticipated milestones in the timeframes currently anticipated or at all, the products under development by XTI Aerospace, the advantages of XTI Aerospace's technology, and XTI Aerospace's customers, plans and strategies are forward-looking statements.

Some of these forward-looking statements can be identified by the use of forward-looking words, including "believe," "continue," "could," "would," "will," "estimate," "expect," "intend," "plan," "target," "projects," or the negatives of these terms or variations of them or similar expressions. All forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. All forward-looking statements are based upon estimates, forecasts, and assumptions that, while considered reasonable by XTI Aerospace and its management, are inherently uncertain, and many factors may cause the actual results to differ materially from current expectations. XTI Aerospace undertakes no obligation to revise any forward-looking statements in order to reflect events or circumstances that might subsequently arise. Readers are urged to carefully review and consider the risk factors discussed from time to time in XTI Aerospace's filings with the SEC, including those factors discussed under the caption "Risk Factors" in its most recent annual report on Form 10-K, filed with the SEC on April 15, 2025, and in subsequent reports filed with or furnished to the SEC.

Contacts

General inquiries:
Email: contact@xtiaerospace.com
Web: https://xtiaerospace.com/contact/

Investor Relations:
Dave Gentry, CEO
RedChip Companies, Inc.
Phone: 1-407-644-4256
Email: XTIA@redchip.com

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SOURCE XTI Aerospace, Inc.

FAQ

What were XTI Aerospace (XTIA) key financial achievements in Q1 2025?

In Q1 2025, XTIA increased cash and equivalents by $3.9M to $8M, improved net working capital by $8.9M, eliminated legacy debt to less than $0.1M, and doubled Industrial IoT segment revenues year-over-year.

What progress did XTIA make on the TriFan 600 development in Q1 2025?

XTIA received FAA acceptance of Type Certification application on March 17, 2025, and enhanced wing fuel volume from 300 to 400 gallons, improving maximum range and mission length.

What is XTI Aerospace's (XTIA) share repurchase program?

XTIA's board authorized up to $5 million in share repurchases to address what management believes is a significant undervaluation of the company's common stock.

What are XTI Aerospace's (XTIA) priorities for Q2 2025?

XTIA's Q2 2025 priorities include engine and drivetrain supplier selection, launch of the Sparrow subscale flying model, FAA technical briefings, and preparation for TriFan 600 pre-sales reopening.

How much debt does XTI Aerospace (XTIA) have as of Q1 2025?

As of March 31, 2025, XTIA had less than $0.1 million of interest-bearing debt outstanding, after repaying secured promissory notes and eliminating legacy debt.